The performance of primary mortgage lenders improved considerably from a customer satisfaction standpoint in 2011, according to J.D. Power and Associates' annual mortgage origination satisfaction study.
The study measures customer satisfaction in four key areas: application/approval process, loan representative, closing, and contact. According to J.D. Power, customer satisfaction this year averages 747 on a 1,000-point scale – up 13 points from 2010.
"The increase in customer satisfaction is driven by improvements in many of the key best practices, including proactive status updates, providing a time frame to expect and meeting it, and providing follow-up contact after the application is submitted," says David Lo, director of financial services at J.D. Power and Associates.
For a second year in a row, Quicken Loans ranks highest among primary mortgage lenders, with a score of 818. The company performs particularly well in the application/approval process and closing factors, according to the study.
SunTrust Mortgage follows in the rankings with a score of 791, performing particularly well in the loan representative and closing factors. ING Bank ranks third with a score of 789.
An improved customer experience translates to an increased market share, J.D. Power says. According to the study, among the lenders that have experienced a substantial increase in overall mortgage origination satisfaction since 2009, overall satisfaction improved an average of 35 index points, and their collective market share has increased by nearly 5%. In contrast, among brands that have declined substantially in satisfaction from 2009 to 2011, satisfaction has dropped 25 index points, and their collective market share declined by nearly 5%.